Justify the chosen audit opinion

Reference no: EM132951448

Question 1: Bigger is Better Ltd (Bigger) manufactures at its Hobart based plant wind turbines for the agricultural market in Australia. Bigger is the market leader and has dominated the Australian market over the past 10 years because of its superior technology. You are the auditor of Bigger and recently you read in the Financial Review that Bigger's main competitor has developed a wind turbine that is 25% more efficient than Bigger's turbine.

Required:

(a) Discuss why this situation represents an audit risk.

(b) Identify the main account(s) affected by this risk and the audit work you would plan to undertake in response to the risk.

Question 2: The following are independent situations (see table below) relating to the year ended 30 June 2020. Assume all entities are reporting entities and that all situations are material.'

Required:

For each situation:

(a) Describe one additional procedure you would perform prior to issuing your audit report.

(b) Assuming the matters remain unsolved, recommend an audit opinion for each entity for the year ended 30 June 2020.

Reference no: EM132951448

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